Bookkeeping in Meeting Tax Obligation
Governmental organizations usually impose some charges to individuals and legal entities referred to as tax with an aim of funding public expenditure. Individuals or entities that evade, resist or fail to pay their tax are likely to be punished by the law. Taxes imposed on an individual or legal entity may be direct or indirect which can be paid by offering labor equivalent of money. Recording all financial transactions by an individual or legal entity is important in ensuring efficiency while filing tax returns. Financial transactions taking place on a daily basis can be enhanced by using the bookkeeping process to record all the transaction.
There are various business accounts processes including bookkeeping which can be described as a process of recording financial transactions that take place in an organization, institution or business on day to day basis. Transactions in a business or organization can …